Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Elon Musk Completes Twitter Takeover In $44B Deal

Published 04/26/2022, 01:38 AM
Updated 05/08/2020, 11:50 AM

Twitter (NYSE:TWTR) has accepted Elon Musk’s offer to acquire all of the company’s common stock for $54.20 per share.

Key Takeaways

  • Twitter has accepted Musk's offer to buy the company's shares at $54.20 per unit in a transaction valued at roughly $44 billion.
  • Musk now owns a 100% stake in the company.
  • The Tesla (NASDAQ:TSLA) and SpaceX CEO has indicated that he wants to champion free speech and that he thinks Twitter has huge potential.

Musk now owns a 100% stake in Twitter.

Elon Musk Buys Twitter

Elon Musk, the richest person in the world with an estimated net worth of $270 billion, has become Twitter’s sole shareholder.

The social media giant confirmed Monday it had accepted Musk’s offer to buy out the company’s shares at $54.20 per unit and take the firm private. According to the press release, the transaction is valued at roughly $44 billion.

Musk offered to buy the company at a premium on its market valuation earlier this month, explaining that he wanted to unlock Twitter’s “extraordinary potential.”

The development came days after it emerged that Musk had taken a 9.2% stake in the company. Twitter CEO Parag Agrawal then announced that Musk would be joining the company’s board, before backtracking on the announcement after Musk decided against joining the board.

Though the Tesla and SpaceX CEO’s offer to buy a 100% stake in the company was seen as big news in the technology world, the chances it would be accepted looked less likely when the company’s board launched what’s known as a “poison pill,” a policy that would allow shareholders to buy the company’s stock at a discount, diluting the value of Musk’s holdings.

However, the firm has since confirmed that it has taken Musk up on the offer.

Besides praising Twitter’s future potential, Musk has repeatedly referenced his interest in championing free speech with respect to social media. Before announcing that he had taken a 9.2% stake in the company, he posted a poll asking his 80 million followers whether Twitter supports free speech.

“The consequences of this poll will be important,” he wrote. “Please vote carefully.” He’s also recently complained about cryptocurrency-related spam accounts on the platform, criticizing the firm for focusing on offering support for NFTs rather than resolving the spam problem.

Elon Musk Twitter Poll

However, Musk is arguably better known for his flippant presence on the platform. He regularly takes shots at other public figures and posts humorous memes, often referencing cryptocurrencies like Dogecoin and even his own companies.

His regular references to crypto assets and Tesla’s stock price have landed him in hot water with the SEC in the past because his tweets often cause jolts in markets (Dogecoin spiked again yesterday on the buyout news), but that’s done little to dissuade him from fooling around behind his keyboard.

Now that he’s actively pushing a free speech narrative as the sole owner in the company, it’s difficult to see him toning his online persona down anytime soon.

Original Post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.